Pound comes under pressure as UK political uncertainty persists Political volatility in the UK prompted sharp movement for the pound over the course of the last week as Theresa May saw off a leadership challenge, securing her position for another twelve months. While the European Central Bank (ECB) followed through on plans to end its [...] Read more about: "Pound comes under pressure"

After two months of stagnation the UK gross domestic product picked up to just 0.1% in October, limiting the appeal of the pound as concerns over the economic outlook persist. The Eurozone economy continued to show signs of weakening, meanwhile, as November’s raft of manufacturing and services PMIs pointed towards another month of easing growth. [...] Read more about: "Concerns over the UK’s economic outlook persist"

In a fresh blow for the euro November’s Eurozone consumer price index slowed from 2.2% to 2.0%, falling back in line with the European Central Bank’s (ECB) inflation target. This easing in inflationary pressure gives ECB policymakers less incentive to consider raising interest rates from their current lows, keeping the central bank in a state [...] Read more about: "Eurozone Inflation"

Pound under pressure as MPs push back against Brexit deal Pound exchange rates slumped sharply on Thursday last week after Brexit secretary Dominic Raab unexpectedly resigned in protest against at Theresa May’s proposed Brexit deal. This reversed the positive impact of the initial news that the UK and EU had finally reached an agreement, also [...] Read more about: "Pound under pressure from BREXIT deal"

Increased hopes for a Brexit deal encouraged the pound to push higher across the board last week, even though UK data demonstrated fresh signs of weakness. Solid US data continued to boost the case for the Federal Reserve to raise interest rates again before the end of the year, keeping the US dollar on a [...] Read more about: "Hopes of Brexit breakthrough boost pound"

Brexit was back in the spotlight last week, driving heavy losses in the pound as EU leaders rejected Theresa May’s Chequers proposals However the pound looks to be mounting a recovery at the start of this week’s session, with GBP/EUR climbing to €1.1176 and GBP/USD surging to US$1.3156. Looking ahead, the focus for investors this [...] Read more about: "Pound collapses as Brexit talks breakdown"

The pound got a strong boost against its rivals when Bank of England (BoE) Governor Mark Carney confirmed that talks were ongoing with the Treasury regarding an extension of his term. Meanwhile some better-than-expected US growth data encouraged the US dollar to extend its bullish run as the impact of Trump’s trade policies remains to [...] Read more about: "Expectation of extended term for BoE governor benefits pound"

Comments from chief EU negotiator Michel Barnier prompted the pound to surge higher across the board last week, with investors betting on the odds of a softer form of Brexit. This relief proved short-lived, however, as Barnier later clarified that the EU’s red lines have not changed and that the prospect of a no-deal Brexit [...] Read more about: "Barnier comments prompt fresh Brexit volatility for pound"

Brexit worries picked up once again during the course of the last week, with the deadline for the conclusion of withdrawal treaty talks pushed back from October to November. In the wake of the bank holiday weekend the pound still looks a little sluggish, maintaining its downside bias against both the euro and US dollar. [...] Read more about: "‘No-deal’ Brexit fears drive pound lower"